Chloe wishes for the "Fair Bears" to become real. Problems begin when they brainwash Timmy, forcing him to be happy and full of love. How will she save herself and Timmy?
The episode begins as school gets out. Timmy is happy for school to be over as a kid runs away and yells, “Tell my story!” Chloe had a hectic day, teaching Mandarin to the kindergartners and inventing a cure for baldness. Timmy has downloaded an app that shows him with a beard, and Chloe meets Cosmo and Wanda, who have downloaded the same app, while she has them poof her to her house. Crocker is grateful for Chloe’s cure (even if it caused him to have webbed feet).
At Chloe’s house, she delivers Tofookies (Cookies made with tofu and cricket protein) to Timmy and exclaims that they will be watching her favorite show, The Fair Bears. Timmy thought it was canceled, but Chloe says that she has the 26 DVD box set. After yelling “Don’t touch them!” to Timmy, she inserts the first one, and the show starts, though Timmy is no fan of the show.
Timmy, along with Wanda, is mortified. But Chloe is thrilled because it’s her favorite show. Wanda tells Timmy that she doesn’t like the show, but doesn’t want to hurt her feelings. But when she sees him trying to escape, she busts Timmy and poofs him back. The “Fair Bears,” consists of Fair Bear, Better Bear, and Happy Rae and they introduce themselves. Cosmo admits that he loves the show, but Happy Rae scares him just a little. Then he notices Wanda and Timmy trying to escape, and sends them back.
Chloe, who is a fan of the Fair Bears, wishes the Bears were real, but noticing that she has fairies, makes her wish and it’s granted. The bears are in the real world, and Chloe gets to meet them for the first time. The group, even a flustered Cosmo, meets them, except Timmy, who leaves immediately. Happy Rae notices that he is frowning.
Chloe tries to ask them to autograph them. The Fair Bears express their love to Timmy and want to be their friend, but Timmy refuses and tells them to stop touching his face. He gets Wanda to agree with him, and he busts her for leaving again. Chloe tries to ease her nerves with activities like their board game. Wanda is bored, but Timmy has a plan, which is to cheat. The Fair Bears don’t like it, so they sing The Forgiveness Song to ease the tension. Timmy is upset, and Chloe says that he is a bummer bear. Fair Bear declares that he is getting cranky, and Better Bear says the only cure is nap time. Timmy says he does not have to nap, but the Bears sing a nap song to have them fall asleep. When Timmy and Wanda wake up, the Bears tell them that they are in Happy Hollow where they are told to wear the Happy Hat that changes their brains. The transformation succeeds, as Wanda drops her wand.
Back at Chloe’s room, she and Cosmo wake up to find them getting along, where Timmy explains that they are being mind-controlled. Chloe explains that there is no ‘happy hat’ in every episode. Wanda and Timmy start hugging them, but Chloe says that she is not happy with this. Upset by what the Bears did, she tells them to change them back. Better Bear says that he is a better person, by which Timmy hugs Cosmo. Chloe exclaims that it is not right, and yells at them to turn them back to normal. Fair Bear notices that Chloe is being unhappy and tries to get her to wear the Happy Hat. Chloe notices that they are crazy and gets Cosmo to poof them back. Unfortunately, he ate the wand while they are asleep. They flee to get a spare wand in Timmy’s room and grab him and Wanda. The Fair Bears set out to get them, and sing The Safety Song. Plus, as Mr. Chocker and his mom drive of after her eye exam, he detects fairies on his tracker, and jumps off to find them.
Once they’re at Timmy’s house, Timmy and Wanda sing the theme song. Chloe exclaims the theme song is now driving her up the wall. Cosmo explains that the signs will point the way to his wand, and gets it. The Fair Bears, now enraged, declare that Chloe is a very bad bear, but Chloe says that she now knows they are the bad bears. Happy Rae is angry and the Bears try to hurt her, but Cosmo stops them by shutting the door. Then Mr. Crocker gets in the room, but Chloe tells him that the Bears are fairies. Timmy tells the truth and hugs his leg. Crocker tries to trust Timmy or Chloe, but decides to suck the Bears in his vacuum. Crocker tells them to lie if the police ask.
After Crocker leaves, Chloe wishes them back to normal. A grossed out Timmy gets off her, and Wanda asks whatever happened to them. Chloe says that they will never do this again. Crocker gets the Bears out and is excited to have them grant his first wish, but his mom drives them over. The Bears are very upset and Happy Rae decides to sing The Revenge Song as the episode ends.